Harvard adopts 'responsible investment' principles

BOSTON, April 7

BOSTON, April 7 (Reuters) - Harvard University said on
Monday it adopted a set of environmental and social investing
principles backed by the United Nations for its huge endowment
fund, a move that could add pressure on companies in its
portfolio to make more disclosures on areas like carbon
emissions.

Cambridge, Massachusetts-based Harvard said it would sign on
to the U.N-supported Principles for Responsible Investment,
while at the same time reinforcing its commitment to maximizing
returns on the fund, the largest endowment of any U.S.
university and valued at $32.7 billion last June.

"After careful review of the PRI, we decided that
implementing the principles put forth by this pioneering
organization is a natural step for us in the evolution of our
sustainable investment practices," said Jane Mendillo, president
and chief executive officer of Harvard Management Co, which
manages the endowment, in a statement.

"At the same time, it is consistent with our paramount focus
on maximizing returns to support the mission of Harvard
University," she said.

Harvard's endowment holds shares in energy companies that
activists had urged be sold as a way to address climate change.

Various asset managers have already adopted the UN-backed
principles including a unit of State Street Corp and Old
Mutual Plc. Along with considering environmental, social
and governance factors in picking stocks, signatories agree to
things like urging companies they own to make more disclosures
on areas like carbon emissions.

Harvard President Drew Faust last fall had rejected calls by
some students and faculty to sell energy stocks but had promised
more emphasis on sustainable investing. Many public-sector asset
managers have also put a new focus on considering environmental,
social and governance factors as part of their investment
process, citing growing interest from their own clients.
(Reporting by Ross Kerber; Editing by Eric Walsh)